CIMA cimapra17-ba1-1 practice test

Question 1

In the short term, if an organisation's income is lower than its expenditure, it is an example of:
A. financial intermediation
B. lack of financial synchronisation
C. why equity capital is needed
D. financial surplus

Answer:

B
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Question 2

CORRECT TEXT
The following table reports are for five hotels belonging to the same hotel chain, the rank in terms of
sales performance (with 1 - best average score obtained in customer reviews, and the rank in terms
of average score from customer reviews (with 1 = best average ..
Calculate the Spearman's rank correlation coefficient to one decimal place:

Answer:

1.8
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Question 3

If a central bank wished to increase the supply of money and credit in the economy it would:

• A. sell bonds and raise interest rates
• B. buy bonds and reduce interest rates
• C. sell bonds and reduce interest rates
• D. buy bonds and raise interest rates

Answer:

B

Question 4

Which of the following is NOT a feature of the data?

• A. Big data analysis requires companies to invest in specialist data analytic skills 137/139 Questions & Answers PDF P-
• B. Big data can sometimes be harvested from electronic devices such as smart meters and GPS systems
• C. Big data is such a large volume that it cannot be analysed through spreadsheets
• D. Big data is purposefully collected from carefully designed samples through surveys and interviews

Answer:

C

Question 5

Which of the following will NOT cause an increase in the demand for public transport in City L?

• A. A change in consumer preferences favoring transportation that reduces carbon emissions
• B. An increase in the price of car insurance
• C. A drop in the price of City L cab rides
• D. An increase in the population of City L.

Answer:

C

Question 6

Which of the following is an example of reflationary monetary policy?

• A. Lowering interest rates in order to boost the economy during a recession.
• B. Introducing a tax on financial transactions in order to reduce the volume of speculative transactions
• C. Increasing investment in education in order to improve the long term competitiveness of the economy
• D. Reducing government expenditure in order to rem in a budget deficit

Answer:

A

Question 7

Which of the following is also known as the International Bank for Reconstruction and Development?

• A. The European Central Bank
• B. The World Trade Organisation
• C. The International Monetary Fund
• D. The World Bank

Answer:

C

Question 8

The following ogive shows the cumulative frequency of the ages of a small sample of entrepreneurs.

Which THREE of the following statements are true?

• A. Four entrepreneurs were aged between 30 and 40
• B. The sample included 10 entrepreneurs
• C. The sample did not include any entrepreneurs older than 65. 136/139 Questions & Answers PDF P-
• D. Two entrepreneurs were aged between 40 and 50
• E. The sample did not include any entrepreneurs younger than 20
• F. Most entrepreneurs were younger than 40.

Answer:

C, E

Question 9

DRAG DROP
Assuming Country A has a floating exchange rate which of the following would lead to a fall of the
exchange rate for Country A and which rise m the exchange rate for Country A.
Complete the table below by matching the relevant label on the exchange rate of the scenarios
listed.
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Answer

Answer:

D

Question 10

Which of the following is an example of an indirect tax?

• A. Corporation tax
• B. Income tax
• C. Inheritance tax
• D. Sales tax

Answer:

D